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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />October 31, 2011 <br />Rick Hunt <br />43160 County Rd 17 -21 <br />Elizabeth, CO 80107 <br />RE: M- 1988 -052; Big R Pit; Corrective Action Extension /Surety Increase SI -1 <br />Dear Mr. Hunt. <br />On July 15, 2011 the Division of Reclamation, Mining and Safety (Division) conducted an inspection of <br />the Big R. Pit; DRMS File No. M -1988 -052. During that inspection, the Division cited two problems: <br />1.) INSPECTION TOPIC: Financial Warranty <br />PROBLEM: The financial warranty is not adequate to reclaim the site in accordance with the <br />approved reclamation plan. This is a failure to maintain the proper financial warranty amount to <br />complete reclamation of the affected lands pursuant to C.R.S. 34- 32.5- 117(4)(b) of the Act. <br />CORRECTIVE ACTIONS: The Operator shall submit adequate financial warranty, as <br />determined by the Division. The Division will send a separate surety increase notice to the <br />Operator. The Operator will have 60 days from the date of that notice to post the additional <br />financial warranty. <br />CORRECTIVE ACTION DUE DATE: 9/26/11 <br />2.) INSPECTION TOPIC: Off -site Damage <br />PROBLEM: The Operator has mined in the wrong location, this is a problem at this time for <br />failure to follow the mining plan as described in the approved application pursuant to C.R.S. 34- <br />32.5 -110 (1) (a) (VII) <br />CORRECTIVE ACTIONS: The Operator will need to submit an Amendment to the permit to <br />update the location of the mining area. The Amendment must be submitted by September 26, <br />2011 and in an approvable form by November 28, 2011. <br />CORRECTIVE ACTION DUE DATE: 9/26/11 <br />The corrective action due dates have been extended several times, however these issues remain <br />outstanding. Based on my last telephone conversation with Linda Buller from your office, it appears you <br />are close to resolving these problems. The Division will require the additional financial warranty be <br />submitted no later than November 7, 2011. <br />Also, the Amendment application must be submitted by November 7 2011 and in an approvable form <br />by January 9 2012. <br />If you have any questions, please feel free to contact me at (303) 866 -3567 ext. 8120 <br />Office of <br />Mined Land Reclamation <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />